Aberdeen Latin American Income Fund Limited

Capturing the powerful income potential of Latin American equities and bonds

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Latest news

An update from our investment manager, Viktor Szabó - 22 July 2020

The coronavirus pandemic presented an unprecedented challenge to the Latin American region. While the speed and magnitude of the policy response varied by countries, mobility restrictions have been implemented on national or regional levels in every country, while monetary and fiscal policies have been eased to lessen the economic hit. As a result of the lockdown measures and a sharp drop in trade, tourism and capital flows the region is going through a period of deep economic contraction. Countries more exposed to commodities exports and tourism will be hardest hit, while those more oriented towards domestic consumption might look forward to a faster recovery. The gradual reopening of the economies is already underway, although several countries in region have not managed to get a grip on the spread of the coronavirus yet. 

Central banks across the region have cut their policy rates and provided liquidity support to their banking sectors. We saw intervention in the foreign exchange markets, while several countries contemplated allowing central banks to support the local bond markets with direct purchases. New loan and refinancing facilities were introduced to help the corporate sector with financing needs. Meanwhile, the Federal Reserve has broadened its swap lines to include Brazil and Mexico, providing additional access to US dollars for these countries.

The fiscal response was also overwhelming, with special focus on protecting the most vulnerable households and companies and safeguarding jobs. Among other measures this includes direct cash handouts, tax deferrals, acceleration of tax refunds, broader unemployment coverage and government loan guarantees. Chile’s stimulus package is equivalent to 7% of GDP, while Peru’s total measures could reach 12% of GDP. Brazil plans to increase its primary budget deficit by 6.5% of GDP, while Colombia also announced an increase in social welfare programs and credit lines. The only notable exception is Mexico, where the administration was relatively slow to react to the pandemic outbreak, and still wants to maintain its original tight fiscal objectives, with only relaxation in healthcare spending allowed so far.

We remain cautious about the near-term outlook for Latin American equities as Covid-19’s impact on the global economy continues to unfold. The intensification of the pandemic, severe financial stress, border closures, country lockdowns and a temporary halt in business activities drags the region into recession this year. In Brazil, further progress in President Jair Bolsonaro’s reform agenda will be needed to bolster the country’s prospects. In Mexico, we expect more rate cuts in the coming months. Investors will also stay watchful over the outcome of Chile’s constitutional referendum, which has been postponed due to the viral outbreak, and whether the government’s stimulus measures can arrest slowing growth.

Despite these short-term uncertainties, we remain optimistic about the Fund’s long-term prospects, given the resilience of the underlying holdings. We will also continue to look for opportunities to select high quality stocks that are backed by solid fundamentals and long-term growth potential that aim to deliver robust yields.

 

Key people

Viktor Szabo

Viktor Szabó

Senior Investment Manager

Viktor Szabó is an investment manager on the emerging markets fixed income team. Viktor joined Aberdeen in July 2009 following the acquisition of certain asset management businesses from Credit Suisse Asset Management. Previously, Viktor worked for Credit Suisse Asset Management Hungary as country chief investment officer. Prior to that, Viktor worked for the National Bank of Hungary as the head of market analysis team.

Brunella Isper

Brunella Isper

Investment Manager

Brunella Isper is an Investment Manager on the Global Emerging Markets Equity Team. Brunella joined Aberdeen in 2010 from Bresser Asset Management where she worked as an Equity Research Analyst. Brunella graduated with a Bachelor of Public Administration (BPA) from Fundação Getúlio Vargas - EAESP, Brazil. She is a CFA charterholder.

Brett Diment

Brett Diment

Head of Global Emerging Market Debt

Brett Diment is the Head of Emerging Markets Debt at Aberdeen Standard Investments. Brett joined Aberdeen Asset Management via the acquisition of Deutsche Asset Management's London and Philadelphia fixed income businesses in 2005, where he held the same role since 1999. Brett joined Deutsche Asset Management in 1991 as a graduate and began researching emerging markets in 1995.

Brett graduated with a BSc from the London School of Economics.

Devan Kaloo

Devan Kaloo

Global Head of Equities

Devan Kaloo is Global Head of Equities and Head of Global Emerging Markets Equities for Aberdeen Standard Investments. Devan joined Aberdeen in 2000 as part of the Asian equities team in Singapore, before later transferring to London where he took up the position of Head of Global Emerging Markets Equities in 2005. In 2015 he was promoted to Global Head of Equities and joined Aberdeen’s Group management board. Devan started in fund management with Martin Currie in 1994 covering Latin America, before subsequently working with the North American equities, global asset allocation and eventually the Asian equities teams.

Devan graduated with an MA (Hons) in International Relations and Management from the University of St Andrews and has a postgraduate diploma in Investment Analysis from the University of Stirling.

Mubashira Bukhari Khwaja

Mubashira Bukhari Khwaja

Investment Manager

Mubashira Bukhari Khwaja is an Investment Manager on the Global Emerging Markets Equity team at Aberdeen Standard Investments. Mubashira joined Aberdeen Asset Management in 2007 from KASB Bank where she was a manager in the service quality division. Mubashira graduated with MSc in Wealth Management from Singapore Management University and MSc in Economics from Lahore University of Management Sciences. Mubashira is a CFA charterholder.

CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

  • Viktor Szabó

    Senior Investment Manager

    Viktor Szabó is an investment manager on the emerging markets fixed income team. Viktor joined Aberdeen in July 2009 following the acquisition of certain asset management businesses from Credit Suisse Asset Management. Previously, Viktor worked for Credit Suisse Asset Management Hungary as country chief investment officer. Prior to that, Viktor worked for the National Bank of Hungary as the head of market analysis team.

  • Brunella Isper

    Investment Manager

    Brunella Isper is an Investment Manager on the Global Emerging Markets Equity Team. Brunella joined Aberdeen in 2010 from Bresser Asset Management where she worked as an Equity Research Analyst. Brunella graduated with a Bachelor of Public Administration (BPA) from Fundação Getúlio Vargas - EAESP, Brazil. She is a CFA charterholder.

  • Brett Diment

    Head of Global Emerging Market Debt

    Brett Diment is the Head of Emerging Markets Debt at Aberdeen Standard Investments. Brett joined Aberdeen Asset Management via the acquisition of Deutsche Asset Management's London and Philadelphia fixed income businesses in 2005, where he held the same role since 1999. Brett joined Deutsche Asset Management in 1991 as a graduate and began researching emerging markets in 1995.

    Brett graduated with a BSc from the London School of Economics.

  • Devan Kaloo

    Global Head of Equities

    Devan Kaloo is Global Head of Equities and Head of Global Emerging Markets Equities for Aberdeen Standard Investments. Devan joined Aberdeen in 2000 as part of the Asian equities team in Singapore, before later transferring to London where he took up the position of Head of Global Emerging Markets Equities in 2005. In 2015 he was promoted to Global Head of Equities and joined Aberdeen’s Group management board. Devan started in fund management with Martin Currie in 1994 covering Latin America, before subsequently working with the North American equities, global asset allocation and eventually the Asian equities teams.

    Devan graduated with an MA (Hons) in International Relations and Management from the University of St Andrews and has a postgraduate diploma in Investment Analysis from the University of Stirling.

  • Mubashira Bukhari Khwaja

    Investment Manager

    Mubashira Bukhari Khwaja is an Investment Manager on the Global Emerging Markets Equity team at Aberdeen Standard Investments. Mubashira joined Aberdeen Asset Management in 2007 from KASB Bank where she was a manager in the service quality division. Mubashira graduated with MSc in Wealth Management from Singapore Management University and MSc in Economics from Lahore University of Management Sciences. Mubashira is a CFA charterholder.

    CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

richard-prosser

Richard Prosser

Chairman

Richard is a chartered accountant, a group director of the Estera Group (formerly known as Appleby Group) and a director of its wholly-owned trust company, Estera Trust (Jersey) Limited. He is a director of a number of companies including property companies, hedge funds and investment management companies. He chairs the investment policy committee of Estera Trust which monitors and evaluates the performance of asset managers throughout the Estera Group. He is also a director of Qannas Investments Limited.

Hazel Adam

Hazel Adam

Non-Executive Director

Hazel has over 20 years experience in the fund management and investment banking industries. After leaving Standard Life Investments in 2005, she joined Goldman Sachs International, as an executive director on the Emerging Market equities desk. She subsequently worked at HSBC Holdings plc, as a director on the Emerging Market equities desk.
Having both buy and sell side experience affords her a unique perspective on global markets and investment strategies. She holds the Financial Times Non-Executive Directors Diploma.

Heather MaCullum cropped

Heather MacCallum

Non-Executive Director

Heather MacCallum is a chartered accountant and was a partner of KPMG, Channel Islands, from 2001 until retiring from the partnership in 2016. She was a member of KPMG's financial services practice in the Channel Islands for 20 years. She is also a non-executive director and chair of the audit committee of Jersey Water and Blackstone / GSO Loan Financing Limited and is a non-executive director of Kedge Capital Fund Management Limited and City Merchants High Yield Trust Limited.

  • Richard Prosser

    Chairman

    Richard is a chartered accountant, a group director of the Estera Group (formerly known as Appleby Group) and a director of its wholly-owned trust company, Estera Trust (Jersey) Limited. He is a director of a number of companies including property companies, hedge funds and investment management companies. He chairs the investment policy committee of Estera Trust which monitors and evaluates the performance of asset managers throughout the Estera Group. He is also a director of Qannas Investments Limited.

  • Hazel Adam

    Non-Executive Director

    Hazel has over 20 years experience in the fund management and investment banking industries. After leaving Standard Life Investments in 2005, she joined Goldman Sachs International, as an executive director on the Emerging Market equities desk. She subsequently worked at HSBC Holdings plc, as a director on the Emerging Market equities desk.
    Having both buy and sell side experience affords her a unique perspective on global markets and investment strategies. She holds the Financial Times Non-Executive Directors Diploma.

  • Heather MacCallum

    Non-Executive Director

    Heather MacCallum is a chartered accountant and was a partner of KPMG, Channel Islands, from 2001 until retiring from the partnership in 2016. She was a member of KPMG's financial services practice in the Channel Islands for 20 years. She is also a non-executive director and chair of the audit committee of Jersey Water and Blackstone / GSO Loan Financing Limited and is a non-executive director of Kedge Capital Fund Management Limited and City Merchants High Yield Trust Limited.

Financial calendar

Year End 31 August
Accounts published November
Annual General Meeting December
Dividend Paid January, May, July, October

Trust details

Aberdeen Latin American Income Fund Limited

Registered Office:
1st Floor,
Sir Walter Raleigh House
48 – 50 Esplanade,
Jersey
JE2 3QB

Registered in Jersey as an Investment Company Number 106012

Launch Date: 16 August 2010

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